9911796707
TMI Blog1996 (2) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... clared certain materials as inputs for the purpose of being used in the maufacture of various final products giving also tariff headings of these inputs. On scrutiny of the R.T. 12 returns, it was found by the Assistant Collector that the appelants, herein, had availed of modvat credit on inputs which had not figured in their declaration under Rule 57G. Proceedings were initiated for the recovery of the amount of irregularly availed modvat credit and the jurisdictioal Assistant Collector by his order dated 24-11-1993 demanded duty of Rs. 30,176.73 under Rule 57-I of the Central Excise Rules and also imposed a penalty of Rs. 500.00 on the items, herein, under Rule 173Q of the Central Excise Rules for violation of the Rule 57G for having not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not tally in respect [of] Body Time Delay relay base which is an electrical item under Chapter 85, but the appellants have declared this as cast zine article under Chapter 79. So also the ld. D.R. pointed out brass screws are falling under Chapter 74 and are different from screws of Chapter 73 as declared by the appellants. Apart from this, it is admitted position that inputs like aluminium anodised name plates, moulding powder and electrical contacts have not been declared at all even in general manner. 4. On a careful consideration of the submissions made by both the sides, it is clear that only those inputs which are included in the declaration under Rule 57G of the Central Excise Rules will be eligible for modvat credit. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel becomes relevant. The departmental instructions noted by the Tribunal therein were to the effect that if statutory records maintained by the asseesee shows that inputs have been received and used in the manufacture of the final product and declaration giving broad description chapters have been filed, the credit should not be disallowed. Therefore, in the present case, for the reasons aforesaid in respect of aluminium anodised name plate, moulding powder, electrical contacts and brass screws, the modvat credit cannot be extended to the appellants and it can be allowed for rest of the inputs which are in dispute in this appeal. Further, having regard to the nature of the offence, the penalty on them is not justified and it is set aside. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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